Why Inspectors Need Custom Home Inspection Contracts: The Power of Separate Contracts for Separate Services
By Alyssa Cink
Last Updated February 24, 2025
You wouldn’t bring a fishing pole to a basketball game. You wouldn’t wear a raincoat to a forest fire. Nor would you use wedding invitations to collect RSVPs for a business meeting. So why would you use your standard pre-inspection agreement for a standalone ancillary service, like a mold or radon inspection?
Not all pre-inspection agreements are created equal. It isn’t just because some aren’t compliant with state regulations, or because many of them are missing essential defense provisions. It’s also because inspectors assume one standard home inspection agreement will work for every service.
There isn’t One Ring (or One Agreement) to rule (or defend) them all. In reality, to provide the best defense, every specialized inspection service needs a specialized, custom home inspection contract. To find out why, we first need to address your scope.
A Separate Contract for Home Inspection Services: Scope
What is the purpose of a home inspection contract? One is to communicate the scope of your inspection. In other words, through your scope, your home inspection services contract tells clients:
- The purpose of your inspection.
- Which standards you follow.
- What’s included in your service.
- What’s excluded from your service.
Here’s an example: Imagine you’re a Texas inspector. For your run-of-the-mill inspection, your agreement should specify that you follow the Texas Real Estate Commission’s (TREC’s) standards of practice (SOPs). It should define a standard inspection and mention what’s expected per your SOPs. Additionally, it should highlight what you’re not required to do, like report concealed defects or determine the presence of mold.
But what if a client hires you to only inspect for mold? As long as you have a mold insurance endorsement and the client’s signature, should you use your regular contract for this standalone service? How would it stand off against a mold claim?
Not well. On paper, your agreement is saying, “I’m performing a standard inspection per my SOPs. I’m not required to report signs of mold.” That would contradict the scope of the service you were hired to perform—reporting signs of possible mold and not doing a standard inspection.
If you want your agreement to work in your favor, it should accurately reflect the service your client is paying for. Otherwise, opposing counsel can argue you didn’t meet your contractual obligations to your client. This, in turn, can make it difficult for your insurance provider to defend you.
When You Need a Custom Home Inspection Contract
Here’s a good rule of thumb: If it deviates from a standard home inspection (as defined by your SOPs), it’s time to tailor your scope.
Take standalone ancillary services, for example. Ancillaries go beyond what’s offered in a typical inspection. So before performing a standalone ancillary like sewer scope inspections, you’d want to prepare a separate service agreement. It should clearly communicate that:
- You aren’t performing a typical inspection per your SOPs.
- You’re only doing what’s required for that standalone ancillary.
But you don’t always need a standalone, custom home inspection contract. If you’re performing condo and apartment inspections or adding an ancillary service to your standard home inspection, you can tailor your scope of services with an addendum. A contract addendum is an additional document you attach to your standard pre-inspection agreement. It modifies your contract’s terms to add back services that a standard home inspection would exclude.
Take a mold inspection, for example. Your main contract would specify that you don’t report signs of possible mold. But if your client requested a standard home inspection with a mold inspection, a mold addendum would add those responsibilities to your scope.
Addendums also work for unique properties like condo and apartment inspections. A condo addendum can alter your scope to clarify that you are not required to inspect shared spaces and structures like attics. This may help protect you from errors and omissions condo inspection claims involving those shared spaces.
How can a home inspector limit his/her liability by contract?
Your agreement is an essential tool for communicating expectations. Tailoring it helps you and your clients stay on the same page about your services. Plus, when your client agrees to the scope and terms by signing your contract, it helps your insurance company defend you against accusations of negligence or incomplete services.
What can you do to maximize your agreement’s protective power? Here are four steps you can take right now.
1. Have custom home inspection contracts for different services.
Let’s say it one more time: Always adjust your scope to match the service you’re performing. Ideally, you should save different versions of your agreement for different situations.
Yes, it may take some extra work (especially if you aren’t insured with InspectorPro). Also, your report writing software may charge you for uploading separate contracts and addendums. But that extra work upfront can prevent even more expensive and time-consuming headaches later.
2. Check before you send.
Meanwhile, having addendums and variations of your contract is only effective if you’re using them.
Before your contract goes out to the client, take a few minutes to check it—even if you just skim your scope of services to verify it’s the correct version.
3. Sign before you inspect.
Additionally, your tailored, custom home inspection contract is only powerful if it’s signed before you start inspecting.
Many inspectors still have a hard time getting their agreements signed beforehand. Sometimes they settle for getting signatures after they start; other times, they don’t get a signature at all. This jeopardizes claims defense and future insurability—with that insurance company and any other. (We share real examples of scenarios from poorly executed signatures here.)
Don’t risk your coverage for something as simple as a signature. Instead, review these 12 ways to get your home inspection contract signed before you start inspecting, no matter what.
4. Get your contract from a source you trust.
Don’t feel comfortable tailoring your pre-inspection agreement? Consult an expert who lives and breathes risk management, like our team at InspectorPro.
Inspectors currently insured with us have free access to our state-specific model agreements. Crafted to accommodate your state’s case law and legislation, they’re proven to shut down claims faster and cut inspectors’ costs (like a $100,000 demand that dropped to a $0 deductible). We offer addendums for your ancillary services, as well as separate service agreements for standalone services. And, best of all, you can get a $1,500 deductible discount just for using our model agreements.
InspectorPro: Your Pre-Inspection Agreement Experts
Not currently insured with us, but interested in our model agreements and ancillary service addendums?
Apply for a no-obligation quote online here.
